Social Security Administration (Northern Ireland) Act 1992

142 Destination of contributions

(1) Contributions received by the Department under Part I of the Contributions and Benefits Act shall be paid by it into the National Insurance Fund after deducting from contributions of any class, the appropriate health service allocation in the case of contributions of that class.

(2) The contributions referred to in subsection (1) above include those paid over to the Department by the Secretary of State under section 16(5) of the Great Britain Contributions and Benefits Act and by the Inland Revenue under paragraph 6(8) of Schedule 1 to the Contributions and Benefits Act.

(3) The additions paid under section 1(5) of the Contributions and Benefits Act shall be paid, in accordance with any directions given by the Department of Finance and Personnel, into the National Insurance Fund.

(4) The sums paid to the Department by the Secretary of State under section 16(5) of the Great Britain Contributions and Benefits Act and by the Inland Revenue under paragraphs 6(8)(b) and 7 of Schedule 1 to the Contributions and Benefits Act in respect of interest and penalties recovered by them in connection with contributions of any class shall be paid, in accordance with any directions given by the Department of Finance and Personnel, into the National Insurance Fund.

(5) In subsection (1) above “the appropriate health service allocation” means—

(a) in the case of primary Class 1 contributions, 1.05 per cent. of the amount estimated to be that of the earnings in respect of which those contributions were paid at the main primary percentage rate;

(b) in the case of secondary Class 1 contributions, 0.9 per cent. of the amount estimated to be that of the earnings in respect of which those contributions were paid;

(c) in the case of Class 1A contributions, 0.9 per cent. of the amount estimated to be the aggregate of the cash equivalents of the benefits of the cars and car fuel used in calculating those contributions;

(d) in the case of Class 2 contributions, 15.5 per cent. of the amount estimated to be the total of those contributions;

(e) in the case of Class 3 contributions, 15.5 per cent. of the amount estimated to be the total of those contributions; and

(f) in the case of Class 4 contributions, 1.15 per cent. of the amount estimated to be that of the earnings in respect of which those contributions were paid.

(6) In subsection (5) above “estimated” means estimated by the Department in any manner which the Department considers to be appropriate and which the Department of Finance and Personnel has approved.

(7) The Department may by order amend any of paragraphs (a) to (e) of subsection (5) above in relation to any tax year, by substituting for the percentage for the time being specified in that paragraph a different percentage.

(8) No order under subsection (7) above shall substitute a figure which represents an increase or decrease in the appropriate health service allocation of more than—

(a) 0.1 per cent. of the relevant earnings, in the case of paragraph (a) or (b);

(b) 0.1 per cent. of the relevant aggregate, in the case of paragraph (c);

(c) 4 per cent. of the relevant contributions, in the case of paragraph (d) or (e); or

(d) 0.2 per cent. of the relevant earnings, in the case of paragraph (f).

(9) From the health service allocation in respect of contributions of any class there shall be deducted such amount as the Department may estimate to be the portion of the total expenses incurred by it or any other government department in collecting contributions of that class which is fairly attributable to that allocation, and the remainder shall, in the hands of the Department, be taken as paid towards the cost of the health service in Northern Ireland.

(10) Any amounts deducted in accordance with subsection (9) above shall be paid by the Department into the Consolidated Fund.

(11) Any estimate by the Department for the purposes of subsection (9) above shall be made in accordance with any directions given by the Department of Finance and Personnel.

(12) The Department may make regulations modifying this section, in such manner as it thinks appropriate, in relation to the contributions of persons referred to in the following provisions of the Contributions and Benefits Act—

(a) section 116(2) (H.M. Forces);

(b) section 117(1) (mariners, airmen, etc.),

and in relation to any contributions which are reduced under section 6(5) of that Act.